European competitiveness - A semiparametric stochastic metafrontier analysis at the firm level

Michel Dumont, Marijn Verschelde (), Glenn Rayp and Bruno Merlevede

No 1701, Working Paper Series from European Central Bank

Abstract: In this paper a semiparametric stochastic metafrontier approach is used to obtain insight into firm-level competitiveness in Europe. We differ from standard TFP studies at the firm level as we simultaneously allow for inefficiency, noise and do not impose a functional form on the input-output relation. Using AMADEUS firm-level data covering 10 manufacturing sectors from seven EU15 countries, (i) we document substantial, persistent differences in competitiveness (with Belgium and Germany as benchmark countries and Spain lagging behind) and a wide technology gap, (ii) we confirm the absence of convergence in TFP between the seven selected countries, (iii) we confirm that the technology gap is more pronounced for smaller firms, (iv) we highlight the role of post-entry growth for competitiveness. JEL Classification: C14, D24, L25, M13, O33

Keywords: competitiveness; cross-country analysis; firm heterogeneity; post-entry growth; total factor productivity (search for similar items in EconPapers)
Date: 2014-07
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-eur and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: European competitiveness: A semi-parametric stochastic metafrontier analysis at the firm level (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20141701

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